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China: Stocks extend losses, resources firms hit by growth worries

[SHANGHAI] China's major stock indexes extended their losses on Wednesday, hurt by resources shares amid signs of a slowdown in industrial production as the nation's economy enters a period of moderating growth.

The blue-chip CSI300 index fell 0.6 per cent to 4,073.67 points, while the Shanghai Composite Index dropped 0.8 per cent to 3,402.52 points.

An index tracking major material firms lost 1.7 per cent, as commodities prices tumbled in Shanghai.

"The selloff appeared to be sparked by the weaker-than-expected Chinese industrial production and fixed asset investment data ... Both series showed a slowing of growth in the Chinese economy," said ANZ in a report.

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A batch of data released on Tuesday showed China's economy cooled further last month, with industrial output, fixed asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.6 per cent while Japan's Nikkei index was down 1.6 per cent.

The largest percentage gainers in the main Shanghai Composite index were SJEC Corp up 10.01 per cent, followed by Eastern Communications Co Ltd gaining 10 percent and Hebei Hengshui Laobaigan Liquor Co Ltd up by 10 per cent.

The largest percentage losses in the index were Changyuan Group Ltd down 10.01 per cent, followed by Keda Clean Energy Co Ltd losing 10 per cent and Xiamen King Long Motor Group Co Ltd down by 10 per cent.

So far this year, the Shanghai stock index is up 10.5 per cent, while China's H-share index is up 23.5 per cent. Shanghai stocks have risen 1.1 per cent this month.

REUTERS

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